The investment will be used to build 20 modern warehouses in strategic locations in Nigeria, Kenya, and Uganda, scale warehouse technology, and next-generation software that captures post-harvest pricing, and develop a soybean processing plant in Ibadan, Nigeria, and a drying facility in Uganda.

The additional warehouses will provide 230,000 MT of storage capacity, enabling up to 200,000 more farmers to access low-cost storage and maximise sales from crop harvests, potentially helping increase farmer incomes by more than 200 per cent.

BII’s investment will also help to develop new markets for smallholder farmers and provide them with access to training and other resources to improve their productivity and profitability.

The investment in AFEX is expected to have a significant impact on food security in Africa.

By supporting smallholder farmers to produce more and higher quality crops, AFEX is helping to increase the availability of food and reduce prices for consumers.

The company’s investment in storage and processing facilities will also help to reduce food waste and ensure that more food is available for people to eat.

Overall, the investment in AFEX is a positive development for Africa’s agricultural sector and food security.

The partnership goes beyond mere monetary terms, with SBI Holdings aiming to rally additional matching commitments from other Japanese institutional investors.

In return, Novastar will offer co-investment avenues and provide market insights.

SBI Holdings will also occupy a non-executive seat on Novastar’s Management Board, while Riki Yamauchi, a former investment banker in Tokyo, will join Novastar’s team to spearhead the partnership’s goals.

Yoshitaka Kitao, the top-tier executive of SBI Holdings, lauded Africa’s potential, highlighting its fast-paced growth, tech-inclined youth, natural assets, and urban evolution.

He envisioned this partnership as a robust conduit between Japan and Africa, fostering financial growth, knowledge transfer, and innovative collaborations.

Novastar has a proven track record of investing in socially and environmentally impactful companies in Africa.

Its portfolio includes Moniepoint, a Nigerian fintech, BasiGo, and mPharma.

The partnership between SBI Holdings and Novastar Ventures is a significant development for the VC landscape in Africa and Japan.

It represents a fusion of visions, ambitions, and a shared commitment to a sustainable and prosperous future for both regions.